Fitch Ratings has withdrawn China-based property developer CIFI Holdings (Group) Co. Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) of 'CC' and senior unsecured rating of 'CC' with a Recovery Rating of 'RR4'.

Fitch is withdrawing the ratings as CIFI has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for CIFI.

Key Rating Drivers

No longer relevant, as the ratings have been withdrawn.

ESG - Group Structure: CIFI has high exposure in joint ventures (JVs) and associates, which appear to have weaker liquidity or funding access. This has led to material cash outflow over the past year and could weaken financial flexibility further.

ESG - Financial Transparency: The company entered into non-standard financial arrangement with minority shareholders that may lead to previously undisclosed scheduled cash outflow.

RATING SENSITIVITIES

No longer relevant, as the ratings have been withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

CIFI is a top-20 property developer based in Shanghai, with a focus in the Yangtze River Delta, Pan Bohai Rim and central-western and southern China. CIFI started consolidating its property-management listed subsidiary, Ever Sunshine Lifestyle, in 2020. It owned a 24% stake at end-2021.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

CIFI has an ESG Relevance Score of '5' for Group Structure due to its high exposure to JV and associates, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

CIFI has an ESG Relevance Score of '5' for Financial Transparency due to its opaque financial arrangements with minority shareholders, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

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